Comparing 2 versions of an entry and highlighting the changes I'm new to Craft and I'm wondering if Craft is able to display the differences within an entry in different versions.

Comparing 2 versions of the entry and highlighting the changes.

Something similar like most of the mergetools do.

I'm aware that the user can comment the last changes.
That's currently not a native feature in Craft, but you might want to consider voting for this similar feature request.

You could pull it off with a custom plugin in the meantime, too.  Since entry revisions are stored between saves, you'd need to pull that revision data from the database using the EntryRevisionsService, add the business logic for calculating the diffs and come up with a UI for displaying it.