DirDiff started as a tool to check two copies of files in separate directories, either by date or by a different modified date.
From there, I had a go at building my own text-diff. Other diff's show the content of both files, and thus show the content that is equal twice. Sounds like a lot of wasted screen-space to me, so I show a single 'flow' and the different parts in different colors. Yes, I know I might have got green and red reversed, but since I use diff primarily to check what I've changed before commit, I like them to show up in red. It draws attention.
It also has a 'drop handle' to drop files or directories on from the shell. Open the drop handle from the main menu, or start DirDiff.exe with the "/H" command-line option. Either drop two items together, or drop one item first and then the other to compare with.