I agree that being a contractor has less stress at work.  I don't have to worry about company politices, gossip (usually no one cares about contractor), review, competition except I worry about the length of my contract and if I will get another contract if the existing contract ends.

The best thing is if the company want me to work overtime, I get paid.  Now being an employee, I don't get a dime even I work 60 hours a week.