The most featured compression software that I have ever seen is 7- Zip, It is simplest one with having very high compression ratio.I find it atleast 15-20 % more useful than other compression softwares like winrar and winzip.The most interesting about it is that it is free instead others like Winzip that is not freeware.
The file formats it supports are:
Packing: 7z, ZIP, GZIP, BZIP2 and TAR
Unpacking :7z, ZIP, GZIP, BZIP2, TAR, ARJ, CAB, CHM, CPIO, DEB, DMG, HFS, ISO, LZH, LZMA, MSI, NSIS, RAR, RPM, UDF, WIM, XAR and Z
It also offers the features like "Dictionary size", "Word Size" and "Solid Block size". Dictionary size can vary from 64 KB to 64 MB depends upon how much compression you want.Word size varies from 8 to 273 and Solid Block Size varies from 0 to perfectly solid. Maximum compression is attained when all the three things are set to maximum and compression is mode it set at Ultra mode but choosing of higher values increases the processing speed required as well as the time required.If one want to save the space then it is the best method to do so.And also for ZIP and GZIP formats, 7-Zip provides a compression ratio that is 5-10 % better than the ratio provided by PKZip and WinZip
To know more about it just click here: 7-Zip
To download it click here: Download
The links I have provided are official.