Alien Encounter was better, hands-down.
AE was imaginative, subtle, and more than a little subversive in its humor. On top of a great story, it also had excellent effects, and tons of high-power acting talent (Jefferey Jones, Kathi Nijimy, Tim Curry).
Stitch is AE with all the best parts ripped out and replaced with sloppy inferior parts. Stitch is a classic Detroit muscle car that's been repainted with latex house paiont and had a Honda 4-cylinder engine put under the hood; it just ain't the same!