UK shares to buy: 2 FTSE 100 stocks I’d acquire

As I’ve been looking for UK shares to buy, two FTSE 100 stocks have attracted my attention. Both have what I would call a substantial competitive advantage. They’re also well run and are making the most of their advantages. 

This is why I believe these are a couple of the best UK shares to buy now in the blue-chip space.

FTSE 100 tech stock

The first company on my list is data provider Experian (LSE: EXPN). This company’s competitive advantage is its data trove. The organisation has been collecting financial information about consumers for decades. As a result, it’s highly respected and regarded in the industry.

As such, consumers and companies alike trust the firm. It would be almost impossible for another startup to establish this kind of reputation without a couple of decades of experience and data gathering. 

Although the company has been impacted by the pandemic and there’s been a drop-off in consumers seeking credit, earnings are now starting to recover. 

According to its full-year results for the fiscal 2021 period, organic revenue grew 7% overall last year. Management expects growth of 7-9% in the current financial year, following organic revenue growth of as much as 20% in the first quarter. 

These figures support my conclusion that this is one of the best UK shares to buy right now. As it continues to grow, I’d add the stock to my portfolio. 

Unfortunately, there’s one significant risk hanging over the business, and that’s the possibility of a data breach. This could impact the group’s reputation for safety and security, which may dent organic growth and result in a hefty financial penalty. 

UK shares to buy

The other FTSE 100 company I’d buy is Spirax-Sarco Engineering (LSE: SPX). Most people haven’t heard of this business, and there’s no reason why they should. It’s a manufacturer of steam management systems as well as other fluid control and temperature management systems.

This is hardly the most exciting business, but its products fill a critical role for companies that use them. For example, for some manufacturers, managing the temperature of facilities is vital. Buyers of industrial and commercial steam systems also need to be sure the system isn’t going to fail, which could have catastrophic consequences. 

This is the FTSE 100 firm’s competitive advantage. It’s a known and trusted engineer. As a result, customers are unlikely to go with a lesser-known startup and sacrifice safety for cost. 

As the world economy rebuilds after the pandemic, I think the demand for the company’s products should increase. That’s why I reckon this is one of the best UK shares to buy today and I’d acquire it for my portfolio.

The main risks the enterprise may face include the possibility of an economic slowdown and higher cost. Both of these risks and challenges could impact profit margins, which would lead to reduced profitability and may dent investor sentiment towards the stock.