Yes.
We always want to achieve the (technical) best. That's why you should always first look at this question from a technically correct perspective. The higher the gain, the more noise an amplifier circuit adds to the output signal. At the same time, with high amplification, you also have to contend with hum more severely. But hey, that's the advantage of a transformer; this is always noise and hum-free. Conversely, this means that you have to put in a correspondingly high amount of effort with an amplifier circuit in order to get it as good as with a transformer. Or to put it another way: If the output voltage of the MC is below 0.26 mV and the coil inductance is below 6 ohms, then a transformer always has an advantage.
Whether a transformer transmits the signal linearly depends on the internal structure of the transformer and the skills of the transformer winder.