How does a Neandertal compare with an anatomically modern human? This diagram below is a simplification of the real answer:
The average Neandertal male stood 64 inches tall, weighed 143 pounds and had a brain volume of 1600 milliliters. The average female stood 62 inches tall, weighed 110 pounds and had a brain volume of 1300 milliliters. Both sexes had to be larger and stockier proportionally because the climate of Late Pleistocene Europe was very similar to that of both Canada and Alaska. We have found no concrete evidence of Neandertals sporting both facial and androgenic (body) hair, but the possibility is a no-braining high.
But if the Neandertals were smaller and heavier--enough to be analogous to the dwarf of modern fantasy--would they still need facial and body hairs?
In this alternate Earth, both Neandertal sexes had the same brain volume (averaging up to 1600 milliliters), but the average male stood 48 inches tall and weighed 200 pounds, whereas the average female stood 43 inches tall and weighed 168 pounds. In short, smaller in height but higher in weight than our Neandertals. With 200 pounds of bone, muscle and fat compressed into a smaller body, this one question stands--would the smaller, "dwarved-down" Neandertal still need facial and body hairs, or would the extra mass be enough to keep them warm in the frigid climate of Ice Age Europe?