Stateful Session bean:-

• Stateful session bean maintain the state of the conversation between the client and itself
• When the client invokes a method on the bean the instance variables of the bean may contain a state but only for the duration of the invocation
• implements the javax.ejb.SessionBean interface and is deployed with the declarative attribute "stateful"

Stateless session bean:-

• A stateless session bean is an enterprise bean that provides a stateless service to the client.
• Conceptually, the business methods on a stateless session bean are similar to procedural applications or static methods; there is no instance state, so all the data needed to execute the method is provided by the method arguments
• implements the javax.ejb.SessionBean interface and is deployed with the declarative attribute "stateless

See the following video on Factory Pattern in Hibernate: -

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