Panasonic Lumix DMC-GM5

If you prioritize compactness, nothing beats the small Lumix GM5. It offers creative freedom and flexibility that you might not find in a camera with a fixed lens. Additionally, it has a Four Thirds sensor significantly larger than those in similarly sized compact cameras. It is highly recommended for enthusiasts due to its built-in electronic viewfinder and direct controls. However, its 16MP sensor may struggle to compete with higher-resolution APS-C chips found in many competing cameras that are often less expensive.