Kotor has a medium size old town between the smaller Budva and larger Dubrovnik. The layout of narrow alleys leading to squares is similar to Budva. The squares previously served as market areas for traders traveling between Italy and the Middle East - there was a salt square, a flour square, a meat square, etc. Today the squares are cafes, restaurants, bars, and ATM machines. It's just as enjoyable an experience looking up at the Catholic and Orthodox churches while eating a salad and drinking a beer.
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On the backside of the Old Town is a stairwell leading to a ridge top fortress. Halfway up the stairs (which cost €3 EUR to access) provides a panoramic view of the town below.
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I preferred Budva over Kotor. Budva's Old Town was smaller but had less foot traffic as tourists seemed to be taking advantage of the beach and other amenities. There also seemed to be more of a modern town separate from the Old Town. I visited Kotor via a day trip from Dubrovnik using Adriatic Express Tours. We spent two hours in Kotor which included a thirty-minute guided tour. This was enough time to see the sites and have a lunch.
For additional photos see FLICKR ALBUM.