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I think these FTSE 100 shares are too cheap to ignore

Some share prices are limping along but in the right conditions could be future sprinters. Here are two stocks I think are right for patient investors wanting to identify cheap FTSE 100 shares.

An expensive-but-cheap FTSE 100 share

Shares in telecoms giant Vodafone (LSE: VOD) work primarily on two levels for me. One is they provide income, great for reinvesting and benefitting from compounding. The second aspect is the value of the shares.

Compared to the firm’s historic P/E the shares now are relatively cheap. If you look back to around this time last year, the P/E was over 30. Now it’s nearer 25. The dividend yield is also high at 6.7%.

The group is continuing to grow in Europe as a result of transformation acquisitions, which may prove to be fruitful for investors. The underlying performance of the business is mixed and growth is low but that’s why the shares are cheap. High-growth shares have high P/E ratios.

Like other telecoms companies, Vodafone has high levels of debt. Plans to sell off its towers network later this year should reduce that burden. Overall the shares look cheap and the rollout of 5G, along with selling more services to like broadband customers, could boost earnings in the future.

Under-pressure FTSE 100 landlord

Understandably with its exposure to retail and to offices, shares of British Land (LSE: BLND) have not done well so far this year. But I think investors may have overreacted and the shares are now too cheap to ignore. They trade on a P/E of 11.

The dividend has been suspended. That’s understandable given the lack of clarity management has over future earnings, especially when the group is supporting its retail tenants through rent relief and delays.

But even before Covid-19, the group was reducing its exposure to retail customers. In five years’ time, retail is expected to account for only about a third of assets.

Right now though, the group is well-financed, with a portfolio of developments and a share price that’s looking cheap. I think it’s potentially too cheap to be ignored. The uncertainty means the group now trades for far less than its assets are worth. Something legendary investors like Warren Buffett would approve of. It gives investors a margin of safety.

This is certainly a cheap FTSE 100 share. But are the shares really worth 38% less than that the start of the year? I’d argue not. There are opportunities for the business to develop more mixed-use sites and reduce its reliance on retail, which seems like a smart move. I think the shares are worth a look for any value-focused investor.

Both of these companies face challenges, especially when it comes to growth. Both are mature elephants, but in the right conditions, I think they could charge. The shares look cheap and they’ll survive this economic slowdown. That’s why they’re difficult to ignore.

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Andy Ross owns no share mentioned. The Motley Fool UK has recommended British Land Co. 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.