Embodiments relate to magnetoresistive (xMR) sensors. In an embodiment, an xMR stack structure is configured to form two different xMR elements that can be coupled to form a locally differential Wheatstone bridge. The result is a highly sensitive magnetic sensor with small dimensions and robustness against thermal drift and sensor/encoder pitch mismatch that can be produced using standard processing equipment. Embodiments also relate to methods of forming and patterning the stack structure and sensors that provide information regarding direction in addition to speed.