water around top spark plug, none from tell-tale

[lesliescott23233]

86 Merc Classic 50, s/n 0A999874. No water from tell-tale, water from around top plug & exhaust when using muffs. Does this model have a head gasket? If tell-tale hose is clear of any obstruction, would compression check be next step? Does low compression indicate cracked head or bad head gasket?