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Forget buy-to-let! I’d invest in these 2 FTSE 100 stocks today to make a million

Investing in buy-to-let properties has helped many investors to make a million in the past. However, tax changes, issues surrounding the affordability of house prices and the potential for rising interest rates may mean that the long-term prospects of FTSE 100 shares are superior to those of buy-to-let investments.

With that in mind, here are two large-cap shares that appear to have bright futures. They could deliver impressive total returns and may improve your chances of making a million.

Morrisons

The recent Christmas trading update from Morrisons (LSE: MRW) highlighted the challenging trading conditions faced by major supermarkets in the UK. The company’s like-for-like sales declined by 1.7% in the 22 weeks to 5 January. This was partly due to weak consumer confidence, which could continue throughout 2020.

Despite this, Morrisons is expected to report a rise in its bottom line of 6% in the current year and next year. Key to this is improving efficiency, with the company recently reporting strong progress in managing its costs. This may help it to remain competitive on price, which could strengthen its market position at a time when other supermarkets are seeking to gain market share.

With a price-to-earnings (P/E) ratio of 13.2, Morrisons seems to offer fair value for money at the present time. Its plans to expand its wholesale operations and upgrade its stores could strengthen its financial performance and lead to a rising share price. As such, now could be the right time to buy a slice of the business while it appears to offer a margin of safety and a relatively favourable risk/reward opportunity.

ABF

Another FTSE 100 company with retail exposure, ABF (LSE: ABF), could also offer long-term growth potential. Its Primark retail operations have become an increasingly important part of its business. As such, Primark’s 4.5% rise in its quarterly sales reported in the company’s most recent update suggests that the financial prospects of the wider business could become increasingly positive over the medium term.

With Primark’s products occupying a budget price point, they could continue to be popular among consumers who are highly price conscious at the present time. And, with ABF seeking to become increasingly innovative in terms of the range of services offered within its Primark stores, it could report increasing sales in the coming years.

Alongside its retail segment, ABF has a wide range of operations such as its ingredients and sugar businesses that help to reduce its overall risk through diversification. As such, it could offer a favourable risk/reward opportunity for long-term investors – especially at a time when it is forecast to post a net profit rise of 8% this year and 7% next year. Its P/E ratio of 18 may not be the cheapest in the FTSE 100, but it could undervalue the company’s long-term growth prospects.

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Peter Stephens owns shares of Morrisons. The Motley Fool UK has recommended Associated British Foods. 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.