Is there a utility that compares files word by word, instead of whole lines or single bytes?

I found that I can simulate this by replacing all the spaces in a file with linefeeds, then 'diff -B' the results, but that's kind of awkward and hard to read when differences that matter come up.

(For the record, I tried using OOo's document comparer, converting to text and using diff, and a few others, but none of them worked. I used to think that running text files through fmt would help, but fmt is strangely inconsistent as to where it breaks lines, even when the content within a line or two is identical.)

Thanks.

mhr