Yeah, you've got the idea. In one case you start with one molecule and end up with one molecule. In the other you start with two molecules and end up with one, so entropy decreases.
You can also think of this problem in terms of kinetics: in the intermolecular case you have two bring two distinct things close together so that they can react. In the intramolecular reaction they are already relatively close together because the two reacting ends are tethered and can't get very far away from one another.