command line recursive word-based diff?

is there a command line program that gives recursive word-based diff (on 2 directories)?

diff -u is recursive, but it doesn't do word by word comparison. wdiff and dwdiff does word based diff but there are not built-in options for recursive diff.

I would like to pipe the result to colordiff so a program that generates output that colordiff understands would be especially useful. Any suggestions? Thanks!

CC