We are not better than Madrid, but the difference in performances and consistency was very big because of how poor Enrique and the whole management was this season.
The teams are close in value, especially as far as the first 11 is concerned. Both clasicos showed this, since neither team really domiated the other in a clear way. But in the end you are as good as your performances, and Madrid was better this season overall. They certainly didn't lose 4-0 and 3-0 in the Champions League for example. That's an embarassing way to go out. And we're certainly good enough to compete with anyone, under normal circumstances. But this season was fucked up, and again, I blame Lucho mostly for this.