Could a Dwarf melee with a Balrog?

[BGreg]

Interestingly, although the dwarves drove off the immature Glaurung, they never killed any dragon of note. They were driven in large numbers from Erebor by Smaug, and they relied on Fram, a Northman, to kill Scatha. Add to that being crushed in Moria by the Balrog, and their track record against fierce Morgothian opponents is rather spotty.

Yes, that is a part of the Tolkien lore i do not quite understand. Especially since, like skytree quotes the Sil :

For the Naugrim withstood fire more hardily than either Elves or Men, and it was their custom moreover to wear great masks in battle hideous to look upon; and that stood them in good stead against the Dragons.

It seems kinda contradictory then that the dwarves didn't fare well with the dragons. Maybe we just don't know anything of the many killed dragons during the war in the north, when most of the dwarves were banished from the Grey Mountains.
Hmmm... The dragons must have been very persistent, or I wouldn't be able to explain why dwarves lost almost every colony they had. Oh wait, I can't explain it