Data compression is a common requirement for most of the computerized applications. There are number of data compression algorithms, which are dedicated to compress different data formats. Even for a single data type there are number of different compression algorithms, which use different approaches. This paper examines lossless data compression algorithms and compares their performance. A set of selected algorithms are examined and implemented to evaluate the performance in compressing text data. An experimental comparison of a number of different lossless data compression algorithms is presented in this paper. The article is concluded by stating which algorithm performs well for text data.