The Finder -> Control-Click -> Compress is Zip compression
As Barney-15E has mentioned, there are other compression utilities available from the Applications -> Utilities -> Terminal command line interface
man zip
man gzip
man bzip2 # can get some serious compression with --best option
man compress # the original Unix compression, which is not very good by today's standards
Depending on what was being compressed, over the years, I've seen different compression utilities be the best for that specific file collection, and then be not so good for a different collection of files. Generally if I have time, I'll often go with bzip2 --best, but it does take longer than other compression utilities.
NOTE: This is from a Unix command line perspective, not a Mac OS X GUI perspective, and not against 3rd party compression tools (I spend a lot of my work day working from a Unix command line, so I tend to use gzip and bzip2 in my scripts a lot).
Yosemite and Mavericks also have memory compression to keep more things in RAM. I do not know what algorithm is used for this compression:
<https://www.apple.com/osx/advanced-technologies/>
<http://arstechnica.com/apple/2013/10/os-x-10-9/17/>
The File System has a HFS+ Compression has been part of Mac OS X since Snow Leopard:
<http://hints.macworld.com/article.php?story=20090902223042255>
<http://blog.fosketts.net/2009/09/11/bizarre-hfs-tricks-in-mac-os-x-10-6-snow-leo pard/>
<http://hints.macworld.com/article.php?story=20090902223042255>
To the best of my knowledge that is the world of Mac OS X built-in compression.