compare-files-method: preference variable

Default value: 2

This variable determines how the compare-files command compares files. The value 0 makes it consider files the same if they have the same last-modified timestamp and the same size in bytes on disk. The value 1 makes it consider files the same if their contents are byte-for-byte identical. The value 2 makes it consider files the same if their contents match after the default conversions for line translation and Unicode decoding are performed. (For the latter two options, also see the compare-files-ignore-spaces variable.)

More info:

Comparing Many Files

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compare-files-ignore-spaces Variable Reference compare-to-prior-version-style