Murphy is stunned by the suggestions made this week.
He told talkSPORT: "First thing I would say, I like Tom, I think he's a good player and I think he can go onto to do good things. But he is nowhere near and will never be anywhere near Steven Gerrard.
"I do [know he never will be anywhere near as good as Gerrard]. You cannot turn a Caterpillar into an Owl. You can turn it into a Butterfly, so he's going to get better. When Stevie was 19, 20 and coming into the team, he was looking like a star. He was quick, strong aggressive and scoring wonder goals.
"I think he's a terrific talent who can get much better, I'm not having a go at him. When you know football and you see a player there's only so much involvement a player can have. Based on his physical characteristics and his technical ability. He's not as quick as Stevie, he's not as technically as good, he's not as good a passer, he's not as good in the air.
"He's not going to drag Everton to a Champions League final, is he?! Or score in a UEFA Cup final for Everton. Or score the winner in an FA Cup final. Everton, Premier League title?! What have you been smoking?! When Everton win the Premier League, I'll be six feet under."