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Forget Bitcoin! I think these 2 FTSE 100 shares could double

Some investors have turned to Bitcoin in the recent market crash as they try to protect their portfolios from further volatility.

Unfortunately, the cryptocurrency has not turned out to be the haven many thought it would be.

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It plunged in value by 50% during the first few weeks of March. It has recovered some ground since, but it is difficult to tell if this rally is sustainable.

The problem is, as the Bitcoin price is determined by supply and demand, it is impossible to place an accurate value on the asset.

As such, FTSE 100 shares could be a better investment.

Forget Bitcoin

FTSE 100 dividend champion BT (LSE: BT.A) looks particularly attractive as an alternative to Bitcoin. After recent declines, shares in the telecoms giant are dealing at a price-to-earnings (P/E) ratio of just 5. The stock also supports a dividend yield of 9.4%.

While the company is unlikely to escape completely unscathed from the coronavirus outbreak, it is better positioned than most other businesses to weather the storm. For example, the group is one of the largest broadband providers in the UK. With so many people working from home, this is now an essential service.

What’s more, most of the company’s revenue comes from fixed-term monthly contracts. This provides BT with a steady income stream to meet obligations and pay its dividend.

That being said, the company’s dividend yield has been under threat for some time.

So, I think it is highly likely the distribution is going to reduced foreseeable future. Still, even a 50% reduction from current levels would leave the stock yielding just under 5%. That’s extremely attractive in the current interest rate environment.

BT’s P/E of 5 also suggests the stock offers a wide margin of safety. A return to its long-term average of around 10 could see the stock double from current levels.

Down but not out

Another FTSE 100 stock that could be a better investment than Bitcoin is Evraz (LSE: EVR). As a major steel producer, Evraz’s income will almost certainly take a hit from the coronavirus outbreak.

However, the company is one of the most efficient steel producers in Europe. This should help it recover quickly when the tide turns.

At this point, it is not very easy to tell just when the tide will turn. But when it does, the stock could double. Evraz was on track to earn nearly $1bn in profits this year. That put the stock on a forward P/E of 4.5.

It could take a few years, but in the long run, it is likely the company’s profitability will return to this level. When it does, it is not unreasonable to suggest that the shares could command a P/E of around 10, suggesting they have the potential to double from current levels.

On top of this, the business has a good track record of returning excess cash to investors. Last year, for example, Evraz’s dividend yield jumped to more than 10%. That implies that when the recovery does come, investors could be in line for sizeable cash returns.

There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it!

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Rupert Hargreaves owns no share mentioned. 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.