This verse clearly states that the pure devotees of the Lord such as Nārada Muni are saintly persons, to be considered superior even to the demigods, the living beings empowered by the Supreme Lord to administer the entire universe. In Bhagavad-gītā (3.12) it is stated:

iṣṭān bhogān hi vo devā
 dāsyante yajña-bhāvitāḥ
tair dattān apradāyaibhyo
 yo bhuṅkte stena eva saḥ

“The demigods in charge of the various necessities of life, being satisfied by the performance of yajña [sacrifice], supply all necessities to man. But one who enjoys these gifts without offering them in return to the demigods is certainly a thief.” In this connection Śrīla Prabhupāda has made the following comment regarding the demigods: “The demigods are empowered administrators of material affairs. The supply of air, light, water and other blessings for maintaining the body and the soul of all living entities are entrusted to the demigods, who are innumerable assistants in the different parts of the body of the Supreme Personality of Godhead. Their pleasure and displeasure depend on the performance of yajñas by the human being.” In other words, by the Lord’s arrangement, material prosperity depends upon the satisfaction of the demigods. If the demigods are dissatisfied due to nonperformance or improper performance of sacrifice, they are empowered to impose various types of suffering upon human beings. Usually this suffering takes the form of either excessive or insufficient supply of material necessities. For example, sunshine is necessary for life, but if there is excessive heat or insufficient heat from the sun, we suffer. Excessive or insufficient rain is also a cause of suffering. Thus the demigods bestow either happiness or suffering upon human beings, in accordance with the performance of sacrifice.

As stated here, however, great saintly persons such as Nārada Muni are always merciful to all living beings.

titikṣavaḥ kāruṇikāḥ
 suhṛdaḥ sarva-dehinām
ajāta-śatravaḥ śāntāḥ
 sādhavaḥ sādhu-bhūṣaṇāḥ

“The symptoms of a sādhu are that he is tolerant, merciful and friendly to all living entities, he has no enemies, he is peaceful, he abides by the scriptures, and all his characteristics are sublime.” (Bhāg. 3.25.21) Śrīla Prabhupāda, in his commentary on this verse, has portrayed the sādhu as follows: “A sādhu as described above is a devotee of the Lord. His concern, therefore, is to enlighten people in devotional service to the Lord. That is his mercy. He knows that without devotional service to the Lord, human life is spoiled. A devotee travels all over the country door to door preaching, ‘Be Kṛṣṇa conscious. Be a devotee of Lord Kṛṣṇa. Don’t spoil your life in simply fulfilling your animal propensities. Human life is meant for self-realization, or Kṛṣṇa consciousness.’ These are the preachings of a sādhu. He is not satisfied with his own liberation. He always thinks about others. He is the most compassionate personality toward all the fallen souls. One of his qualifications, therefore, is kāruṇika, great mercy to the fallen souls. While engaged in preaching work he has to meet with so many opposing elements, and therefore the sādhu, or devotee of the Lord, has to be very tolerant. Someone may ill-treat him, because the conditioned souls are not prepared to receive the transcendental knowledge of devotional service. They do not like it; that is their disease. The sādhu has the thankless task of impressing upon them the importance of devotional service. Sometimes devotees are personally attacked with violence. Lord Jesus Christ was crucified. Haridāsa Ṭhākura was caned in twenty-two marketplaces, and Lord Caitanya’s principal assistant, Nityānanda, was violently attacked by Jagāi and Mādhāi. But still they were tolerant because their mission was to deliver the fallen souls. One of the qualifications of a sādhu is that he is very tolerant and is merciful to all fallen souls. He is merciful because he is a well-wisher of all living entities. He is not only a well-wisher of human society, but a well-wisher of animal society as well. It is said here, sarva-dehinām, which indicates all living entities who have accepted material bodies. Not only does a human being have a material body, but other living entities, such as cats and dogs, also have material bodies. The devotee of the Lord is merciful to everyone — the cats, dogs, trees, etc. He treats all living entities in such a way that they can ultimately get salvation from this material entanglement. Śivānanda Sena, one of the disciples of Lord Caitanya, gave liberation to a dog by treating the dog transcendentally. There are many instances where a dog got salvation by association with a sādhu, because a sādhu engages in the highest philanthropic activities for the benediction of all living entities. Although the sādhu is not inimical toward anyone, the world is so ungrateful that even a sādhu has many enemies.

“What is the difference between an enemy and a friend? It is a difference in behavior. A sādhu behaves with all conditioned souls for their ultimate relief from material entanglement. Therefore, no one can be more friendly than the sādhu in relieving a conditioned soul. A sādhu is calm, and he quietly and peacefully follows the principles of scripture and at the same time is a devotee of the Lord. One who actually follows the principles of scripture must be a devotee of God because all the śāstras instruct us to obey the orders of the Personality of Godhead. Sādhu, therefore, means a follower of the scriptural injunctions and a devotee of the Lord. All these characteristics are prominent in a devotee. A devotee develops all the good qualities of the demigods, whereas a nondevotee, even though academically qualified, has no actual good qualifications or good characteristics according to the standards of transcendental realization.”

Vasudeva, therefore, has used the word sādhu to describe Nārada Muni, indicating that the position of the devotee of the Lord is superior even to that of the demigods.