Both stealth generation and ablative armor generation work on the same principles.
Armor
The system generates an actual physical armor consisting of Quasi-Matter which bears the brunt of physical damage to the ship and absorbs incoming energy into its own matrix, essentially incoming energy and be stored and used to support the quasi-matter staying intact.
Stealth
Generators preform in a similar way but instead of producing armor it produces a form of Quasi-Matter that bends light around the vessel. This layer diverts energy around the ship similar to how a cloaking device does. The primary difference being that a traditional cloak uses a massive energy field to divert energy around a ship where as this technology uses matter in a state of flux to divert energy around the ship. The matter layer also serves to increase dampening of energy output from being detected outside the stealth layer. The overall effect is a drastically reduced energy output over time during operation.
Limitations
Since both technologies use the same generators, only one may be active at a given time.