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Have £5k to invest in FTSE 100 stocks? I’d buy these 2 cheap shares in an ISA today

The FTSE 100 may have rebounded after its recent market crash, but a number of its members appear to offer wide margins of safety at the present time.

Therefore, buying them in an ISA for the long term could be a profitable move. It may allow you to generate high returns as the world economy gradually recovers from what is likely to be a period of slower growth.

With that in mind, here are two large-cap shares that trade at relatively low prices. They could be worth buying with £5k, or any other amount, today.

Land Securities

Lockdown measures have negatively impacted FTSE 100 commercial property businesses such as Land Securities (LSE: LAND). Its recent full-year results showed that the company has experienced a 6.3% decline in revenue as a result of rent deferrals and an uncertain future for the wider economy.

Looking ahead, demand for retail and office units is likely to fall due not only to weaker economic growth, but also because of changing economic trends. Online retailing could become even more popular, as could working from home, after the pandemic. This could lead to more difficult operating conditions across the commercial property sector.

Despite this, Land Securities could offer long-term capital growth. It has a resilient balance sheet with £1.2bn in cash and available facilities, while its 30.7% loan-to-value (LTV) ratio is relatively modest. This suggests that it has the financial strength to adapt to changing market conditions over the coming years, which could allow it to deliver an improving financial performance.

The FTSE 100 company’s shares currently trade around 36% down in 2020. This indicates that investors are pricing in many of the risks faced by the business, which could make now an opportune moment to buy a slice of it for the long run.

FTSE 100 bank Barclays

Another FTSE 100 share that appears to offer a wide margin of safety at the present time is Barclays (LSE: BARC). The company’s shares are trading 33% down year-to-date, with a challenging outlook for the sector weighing on the bank’s prospects.

Prior to coronavirus, Barclays appeared to be making progress in implementing its strategy. For example, its efficiency continued to improve as cost control measures were put in place, while its capital position has become increasingly secure. Its diverse range of operations have also helped to mitigate the impact of a challenging economic period thus far, and could differentiate the bank from its peers in the eyes of investors.

Looking ahead, Barclays is likely to experience a period of weaker financial performance over the coming months. However, with what appears to be a sound strategy and a low valuation after its share price fall, it could offer capital growth over the long run relative to many of its FTSE 100 index peers.

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Peter Stephens owns shares of Barclays and Landsec. The Motley Fool UK has recommended Barclays and Landsec. 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.