dwarf vs fay

dwarf and fay both are nouns.

Word	Noun	Adjective	Verb	Adverb
dwarf	Yes	No	Yes	No
fay	Yes	No	No	No

As nouns, fay is a hypernym of dwarf; that is, fay is a word with a broader meaning than dwarf:

dwarf: a legendary creature resembling a tiny old man; lives in the depths of the earth and guards buried treasure
fay: a small being, human in form, playful and having magical powers

Other hypernyms of dwarf include faerie, faery, fairy, sprite.

dwarf (noun)	fay (noun)
a plant or animal that is atypically small	a small being, human in form, playful and having magical powers
a person who is markedly small
a legendary creature resembling a tiny old man; lives in the depths of the earth and guards buried treasure

dwarf (verb)	fay (verb)
check the growth of
make appear small by comparison