It is outclassed by the CD-S1000 yet not as much as i would have thought. It is alarming how much it gives the cd player a run for its money. I find it ticks all the right boxes, yet the Yamaha cd player does these that little bit better. But the DacMagic really does punch well above its price range...i have to say, this may sound controversial. I find PC audio sometimes to be warmer, less dynamic and thus less tiring to the ears when listened to for extensive periods of time. Therefore I can see myself using the DacMagic to PC more than the cd player, also because it is far more conveniant. When I really want to enjoy my music, the cd player will be employed.