The KTM handles and goes just as well, it looks just as good, it's cheaper and, unlike the R125, comes with ABS. But it doesn't win this comparison.
It has more reasons in its favour but the R125 has a bigger one: the promise of reliability. It is not hard to find internet forum threads of Duke 125 owners listing faults. Complaints include bad fuelling, flaky paint and minor but persistent electrical problems.
A few years ago we might have said buy the KTM, have a laugh, do your test and sell it. But now riders turning 17 are limited to a 125s for two years. What they choose has to last and ideally hold some value.
For the sake of £350, the Yamaha has it for peace of mind. Just remember though, if you lock the front, Mr Bosch isn't there to help.