The wizards, called the Istari in Quenya, were actually Maiar (a kind of angel) send specifically to Middle-Earth in human form by Eru Iluvatar for the purpose of fighting the servants of Melkor, a.k.a. Morgoth, of which Sauron was chief. There were five Istari, though only two are mentioned by name in the surviving chronicles.
Interestingly, the Balrogs of Morgoth were also Maiar. Consequently, when Gandalf battles the Balrog in Moria, he is going up against a creature fully his equal in rank and power.
Now there's some Nurd Dorkery for you right there.
Sorry... THREE of the Istari were mentioned by name, those being Saruman, Gandalf, and Radagast.
Weren’t the balrogs inferior to dragons? That never made sense to me.