A new line of research uses compression methods to measure the similarity between signals. Two signals are considered similar if one can be compressed significantly when the information of the other is known. The existing compression-based similarity methods, although successful in the discrete one dimensional domain, do not work well in the context of images. This paper proposes a sparse representation-based approach to encode the information content of an image using information from the other image, and uses the compactness (sparsity) of the representation as a measure of its compressibility (how much can the image be compressed) with respect to the other image. The more sparse the representation of an image, the better it can be compressed and the more it is similar to the other image. The efficacy of the proposed measure is demonstrated through the high accuracies achieved in image clustering, retrieval and classification.