I have used the built-in system imaging extensively until recently, though now use Macrium in preference. There is no user control over compression in the MS system imaging. If the image is being saved to to an HDD then minimal (if any) compression is used. Annoyingly, the MS imaging
does have compression capabilities, but will only use it when saving images to a DVD drive.
In lieu of compression, these are the steps I take before using the built in system imaging in order to minimize its size.
First use Disk Clean Up's clean up system files option. Windows update backups in particular can occupy several GB. Remember, cleaning temporary internet files only clears the caches for Edge and IE. If you use other browsers you'll also need to clear their caches yourself, or use a cleaner like CCleaner to do the job.
Next look at the space occupied by restore points. Left unchecked these can occupy many GB. I generally delete all restore point before making an image.
Turn off hibernation using the command
powercfg /hibernate off in a command prompt (admin). Even if you think you don't use hibernation there will generally be a hiberfil.sys about half the size of your installed RAM for the use of Fast Start up. Hiberfil.sys is included in the system image by the built in imaging.
Turn off virtual memory (will require a restart). If you let Windows manage virtual memory you will have a pagefile.sys about the same size as your installed RAM. This too will be included in the MS system image.
Manage Virtual Memory Pagefile in Windows 10 | Windows 10 Tutorials
I like to put a READ-ME.TXT in the center of the desktop before masking the image, this tells me to turn both back on again after restoring the image

Macrium (at least, when run from within windows) will not include hiberfil.sys or pagefile.sys in it's images, rather it includes a small stub as a place-marker.