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Forget buy-to-let: I think these 2 FTSE 100 shares can help you become an ISA millionaire

While investing in buy-to-let properties has historically been a popular means of generating wealth, the FTSE 100 could offer superior risk/return appeal.

Not only does it offer more liquidity and greater tax efficiency when shares are purchased through an ISA, a number of its members appear to be undervalued based on their growth prospects.

Therefore, an investor who’s looking to generate a seven-figure ISA in the long run could have a number of appealing opportunities available at the present time. With that in mind, here are two FTSE 100 shares that appear to have long-term growth potential can could boost your ISA returns.

Smith & Nephew

Medical technology company Smith & Nephew (LSE: SN) announced on Tuesday it has agreed to acquire Atracsys Sarl. It’s a Switzerland-based provider of optical tracking technology used in computer-assisted surgery. The company’s optical tracking camera will be a core enabling technology for Smith & Nephew’s multi-asset digital surgery and robotic ecosystem. It claims to offer superior measurement speed that supports reduced procedure times, as well as increased accuracy.

Looking ahead, Smith & Nephew is forecast to post a rise in earnings of 8% in the current year. This could boost investor sentiment, while its track record of resilient financial performance may increase demand for its shares at a time when the outlook for the wider stock market is relatively uncertain.

Although the stock has a relatively high price-to-earnings (P/E) ratio of 21.9, it operates in an industry where growth forecasts are robust. Therefore, while not the cheapest stock in the FTSE 100, it may warrant a premium valuation over the long run.

Whitbread

The sale of its Costa Coffee division now means Whitbread (LSE: WTB) can now focus on building its Premier Inn chain of hotels across the UK and in international markets.

It appears to have significant scope to do so, with demand for budget hotels buoyant in a number of key markets. This could provide the business with a significant growth opportunity, potentially offering a more robust performance than the wider hotel industry as customers trade down to cheaper options during challenging economic periods.

Whitbread’s valuation suggests investors are relatively optimistic about its prospects. The stock trades on a P/E ratio of 16.7. However, its growth outlook from the investment it’s making in the business, as well as in cost-cutting measures that are designed to make it more efficient, could produce a rising bottom line over the long run.

With the company continuing to innovate through formats such as ‘hub’, which offers smaller rooms in prime locations, the business appears to have several key growth drivers. This could allow it to generate further growth and justify a higher share price that could boost investors’ ISA returns and increase their chances of making a million.

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Peter Stephens owns shares of Whitbread. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.