The entity translator provides a function that takes one or more data contract classes as parameters and returns a specific business entity.
Within the implementation of the function, a new instance of the business entity is created and initialized using data from the data contract classes.
After a new instance of the business entity has been initialized, it is returned to the application that made the request.
source: https://msdn.microsoft.com/en-us/library/ff699418.aspx
So this description sounds very similar to a Factory method.
Would it be safe to assume that the only difference between them is the type of parameters used to create the object?