Gandalf, under his limitations of one way or another, was able to defeat a Balrog; Gandalf the White, having discarded said boundaries, was conclusively on par or more powerful than Sauron. So I guess we could say he was of a higher order, although Balrogs were quite powerful indeed. I cannot say whether they were unambiguously less than Sauron or not, but presumably so.
Bear in mind that Morgoth cannot create anything of his own. He merely 'corrupted Balrogs to his service', but they were there before.
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