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Don't want to sound that much as tosser (I guess I am anyway) but I don't see much to criticize here.
The other chaps have a very generic website that looks similar to yours... and yours looks like about a thousand other web design firms.
The portfolio looks good, and the site is more tasteful than the other... also I reckon that the domains are different enough to avoid a google confusion.
People who cannot afford big players usually work with their close network. They will know you and probably forget your company name, so no biggie.