Z:

Z:Home

Z:HomeA Folder

Z:HomeA Foldertesting

Z:HomeB Folder

Z:HomeC Folder

Z:HomeC Foldertest2

Z:Test 3

Z:HomeA Folder < This would be removed

Z:HomeA Foldertesting  <This would be kept

p = genpath('C:UserslmendoDocuments'); %// argument is base folder
folders = regexp(p,';','split'); %// split into strings
folders = folders(1:end-1); %// remove last element (it's empty)
valid = false(size(folders));
for n = 1:numel(folders)
    valid(n) = numel(strmatch(folders(n),folders))==1; %// 1 means the folder is
    %// only a prefix of itself
end
children_folders = folders(valid);