If you are looking for free alternative to Beyond Compare, which is really a nice paid source code comparison tool for developer, continue reading.
CodeCompare is a brand-new file and folder comparison tool which is designed based on the programmer to programmer philosophy and perfectly fits the needs of developers.
It get easily integrated with Visual Studio to perform all the development and merging operations within one environment at the same time. Thus you get all the VS editor power for text editing.

CodeCompare can process all text file types supported by Visual Studio, for example:
- C# sources
- C++ sources
- Visual Basic sources
- Solution and project files
- XML
- HTML pages
- ASP.NET Web Forms
- JavaScript files
- WPF documents
- SQL
CodeCompare comes with following features:
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Two-way comparison
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Two-way merge
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Visual studio integration
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Intellisense
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Syntax highlighting
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Code folding
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Bookmarks
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Windows Shell integration
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Show inline changes
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Unicode support
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Command line support
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Folder comparison and merge
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Lexical comparison

CodeCompare is free to use, but it you are looking more options than you can look at CodeCompare Pro which comes with a price tag $49.95.
CodeCompare Pro comes with following features in addition to already mentioned:
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Three-way comparison
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Three-way merge
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Moved block detection
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Structure comparison
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Difference explorer
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Similar lines detection
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