Yes we are, we right now are miles off madrid. Madrid have a good keeper, worldclass fullbacks, a worlclass cb and a very good cb, worldclass midfield supported by a good dm, a very good attack led by the best (or 2nd best) player in the world. They have players on bench who will easily start for utd.
In comparison, we have the best keeper in the world, but beyond that, valencia is a decent defensive fullback but offensively he is well below par, other than bailly no real good cb's and even bailly has long way to go to reach ramos level. Average left backs, shaw has been average other than 5 games and darmian blows hot and cold defensively and is average offensively.
Pogba and Herrera are a very good mf pairing but not as good as kroos and modric, we have not real dm as carrick is too old and fellaini is, well fellaini. It is a travest that, that is all we have to call a midfield.
In attack, we have 2 young forwards in martial and rashford both of whom could turn out to be class or could turn out to be next forlan and welbeck, both have a long way to go for us to know for sure which it will be in the end. But both talent wise currently will make madrid bench at best and that too barely, mata and mkhi are good but neither are as good as isco let alone bale or ronaldo. Only other player of ours that would have gotten into madrid 11 on basis of talent right now other than ddg was ibra and he is done for, highly unlikely to really play at that level anymore sadly.
So that is 1 player in 11 that would get into their their starting lineup, that is how far behind we are. Many of their bench players like isco, morata, james are better or atleast equal to our starting 11 players, that itself tells us how big the gap right now is.