Came across this neat explanation of the difference between nodal stress and element stress. I feel it is necessary to share this note because I have been asked several times about this question. This is definitely one of the fundamental concepts that a structural analyst should understand and be able to explain. Enjoy reading!

It should be noted that the elements described in Table 1 refer to elements in SolidWorks Simulation, not in ANSYS.

Reference: Shahin S. Nudehi, John R. Steffen, Analysis of Machine Elements Using SOLIDWORKS Simulation 2021, Stephen Schroff, pp I-9, I-10.