There really shouldn’t be much difference between the two pictures, and there are a few cases where the Virgin Stream picture should be better, e.g. some of the free to air U channels are now SD on satellite but HD on Virgin Stream.
I assume from what you say you are plugged directly in to an HDMI socket on the TV. Try a different one if you can just in case there is any difference.
Three things to check. The first two press home and go across to settings which is the cog near the right:
Firstly under Settings and “Audio & Video” I have HDMI resolution as automatic.
Secondly under System go to Diagnostics. Make sure you scroll down that page and see if there are any errors at the top or the bottom.
Finally have look at Sky News [602]. After a few seconds whilst the connexion settles down is the ticker at the bottom of the screen smooth as it moves across the screen?