Hobbits share a great deal in common with regular folk, according to Tolkien, because unlike many of the author's other fantastic creatures, hobbits have "little or no magic about them" (The Hobbit 4). Bilbo and Frodo are every-day sort of heroes, who rely on their quick wit and good hearts to see them through the worst of situations. They appeal to the reader because they represent 'every man'--they are simple souls who enjoy a quiet home life and have little experience with adventures, which is another similarity undoubtedly shared by most readers as well.
Hobbits are, of course, a much smaller race of people, only half the height of regular men, but their facial features are quite similar. Beside height, one distinct difference is that hobbits have large hairy feet with leathery soles.
Hobbits usually have few or no magic similar to human beings. Bilbo and Frodo usually use their wit and experience just like we would use it in everyday situations. They are simple people who just want to enjoy life, just like other humans in the world.