I would suggest that "corporeal" races should not count, although I'm sure a point of contention could be made of it.
My reasoning is encountering a dwarf, or even a hobbit, in Middle earth is not a particularly magical experience. Elves might be a different category. However, if races are counted then obviously Tolkien created a more magical world.
I'm thinking of something more along the lines of "magical" phenomena like Galadriel's Mirror or the shadow babies.
As far as dragons go, Martin has more of them appear by name in his stories (if you count things like The Princess and the Queen. Of course, Martin's don't speak but they are clearly connected with magic in his world.
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...finding a path that cannot be found, walking a road that cannot be seen, climbing a ladder that was never placed, or reading a paragraph that has no...
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