So, here is my two cents, they worth what they worth (two cents) and I've been wrong in the past. But for dwarves, axes will beat swords, because your battle axe is the full version of the weapon, and your sword is the discount version of the human weapon.
Playing as human and making most of my gear out of bronze and iron, I find axes and swords about equals fighting most of the enemies. But we have long swords, and dwarves don't.
Weapons getting stuck in wounds are not so bad. It's a boon and a bane. It's good when you have numerical superiority, so it helps fighting big beasts, it's bad when you are outnummered, so it's typically bad against goblins.
If you are working with bad materials, axes go through armor more easily than swords in my experience, but once they hit the flesh, the damages is not as gruesome. Swords lop limbs, axes break mails.
If you are looking for only one type of weapon and are arming dwarves, I'd say go for axes. It can't really go wrong, even a copper axe will do decently in most scenarios, whereas a copper sword may plink against an armor.
Edit : If you are making weapons out of candy... Maybe swords are not a bad idea actually. Candy weapons are lightsabers. It just goes through armor, which is the main sword weakness.