This paper defines series of important performance evaluation parameters to evaluate amplitude-phase (AP) algorithm comparing with that of block adaptive quantization (BAQ) algorithm. The evaluation procedure is carried out in two domains, raw data domain and image domain. Numerical experiments based on ERS-2 data show that AP algorithm provides us with more compression ratio (CR) choices than BAQ and for certain CR, AP algorithm provides at least one choice whose performance is better than or equal to that of BAQ. These two algorithms neither affect spatial resolution nor generate geometric distortion