KVM vs OpenVZ

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KVM
KVM (for Kernel-based Virtual Machine) is a full virtualization solution for Linux on x86 hardware containing virtualization extensions (Intel VT or AMD-V). It consists of a loadable kernel module, kvm.ko, that provides the core virtualization infrastructure and a processor specific module, kvm-intel.ko or kvm-amd.ko. KVM also requires a modified QEMU although work is underway to get the required changes upstream.
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OpenVZ
OpenVZ is container-based virtualization for Linux. OpenVZ creates multiple secure, isolated Linux containers (otherwise known as VEs or VPSs) on a single physical server enabling better server utilization and ensuring that applications do not conflict. Each container performs and executes exactly like a stand-alone server; a container can be rebooted independently and have root access, users, IP addresses, memory, processes, files, applications, system libraries and configuration files.