The 7-Zip .7z format gives best results overall, and also has much stronger encryption than the .zip format.
Please recall that the .zip format is actually two DIFFERENT formats:
- Old 16 bit style zip, with a 2gb file size limit
- New zip format, which lifts this file size limit
Many tools, such as the zip support built into some versions of Windows, only support the older zip format.
Additionally, the zip format has really weak encryption that is easily cracked. The RAR and 7z formats are both dramatically better than the old style zip encryption (I am not versed in the quality of new zip compression, so cannot comment on it).
7z is a great choice.
RAR is also a good choice.
HTH!
1Hard to say exactly since a Zip file may be using any one of several compression algorithms. The most commonly used algorithm is the Deflate algorithm, which is not a super-great and modern algorithm but has become the lowest common denominator since all zip-aware tools can use it. – Andrew Lambert – 2011-07-19T22:59:33.533
@Amazed: such a wonderful answer, wasted as a comment :) – akira – 2011-07-20T04:21:48.070
1@akira Thanks. It just felt like a non-answer to say "well that all depends." – Andrew Lambert – 2011-07-20T05:51:25.260