Have you checked the valve gaps to make sure they are within spec. Also when you roll the engine over are both valves opening the same distance or is one just barely coming open and closing really quickly indicating a camshaft lobe issue. I wouldn't put a lot of stock into the compression readings. I like to see a decent compression reading on everything that I work on but I worked on a generator last year that had like 5% lose on leakdown test, but only showed 5 psi on the compression gauge.