The difference is actually quite a lot bigger than that, though that kind of example gets the point across.
Full metal jacketed pistol ammunition, such as used in militaries, is usually round-nosed (e.g.
US M882 9x19mm FMJ), and (obviously) doesn't deform. When such a bullet hits a human at pistol velocities, tissue mostly flows around the bullet and is not ejected sideways at a high velocity. Thanks to the elastic nature of human flesh, the permanent wound cavity is then quite small --
here is an example of the kind of wound cavity a 9x19mm FMJ will cause.
As you know, common pistol calibers in use these days range from 9mm to 11.4mm (.35" to .45"). A hollow point bullet for these calibers can expand to twice that diameter or even more, although for common defense handguns and loadings an increase of about 75% in diameter is more likely (compare with 18% for a nickel over a dime). In addition to increasing the diameter, the deformation drastically changes the shape of the bullet. The flat head of a deformed hollow point bullet will eject tissue out of the bullets way at a much higher velocity, as well as possibly ripping the edges of the wound cavity (some bullets, like
this, have been designed with this effect in mind).
The greater diameter and flatter shape together can easily double the diameter of the permanent wound cavity over a FMJ design. This is the main reason why using standard FMJ ammunition in a handgun for defense is a really bad idea. Armor penetration is usually a non-issue here, since most handguns will not penetrate common bullet-resistant body armor types even with FMJ bullets.
Obviously, while creating a greater wound cavity, a hollow point bullet will also penetrate less tissue. This is usually not a problem, since you only need 12-18" (30-45cm) of tissue penetration to bag humans, anything beyond that is largely a waste against unarmored humans. As you can see from the picture of the 9x19mm FMJ shot in gelatin I linked, there's plenty of extra penetration on pistol FMJs -- for another example,
here's a .45 ACP FMJ shot into similar calibrated gelatin. In some cases, however, the expansion of a hollow point bullet is too sudden and too extreme and penetration in tissue is not sufficient -- this is a common problem in high-velocity loadings for bullets that are rather light for a particular caliber, such as 115gr +P hollow points for 9x19mm.