Does increasing compression increase horsepower?

[Gregski]

I've been looking at Chevrolet crate motors, two in particular and am wondering why the one with lower compression has a higher horse power output? Doesn't increasing compression increase horsepower after all?

The two engines and their specs, the cams are different specs but both hydraulic flat tappet, I get it, but the heads seem very similar. Both have 76cc chambers and 1.94 intake / 1.50 exhaust valves. Not power related but FYI both have 2 piece rear main seals and 4 bolt mains.

10067353 Base 195/260 HP Engine
8.5:1 Compression
Heads - Part # unknown (similar to #882 castings)
Valve Springs - Part #3911068

12499529 290 HP Engine
8.0:1 Compression
Heads - Part #93438648/93438648
Valve Springs - Part #94666580