When doing a compare on a local versus server file, differences are marked with the colors red and blue (text/font color). What does each color mean?
At the bottom of the compare window, you should see a small legend that explains the colors:

Whichever pane it's showing that color in is the version of the file in which that event occurred.
Blue: modified/changed text code;
Red: deleted text code
in versions.
See the key in this image:

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