2 cheap FTSE 100 shares! Which should investors buy for 2023?

These two FTSE 100 stocks trade at rock-bottom earnings multiples. Are they top buys for value investors like me?

Bunzl

The rise of sustainability can have great consequences for those who focus on one product as well Bunzl (LSE: BNZL). This week, for example, the government announced a ban on single-use plastic cutlery, polystyrene trays and similar products in the UK. It is the latest development in a global trend that is picking up pace.

But even though environmental actions are on the rise, I still think about the Bunzl that I can buy. And especially at current prices. Today the support services business trades at a price-to-earnings ratio (P/E) of 16.7 times for 2023. This is also below the historical average of 22 times.

The company sells a variety of essential everyday products and not just consumables. It can also use scale to expand the demand for disposable goods that use more environmentally friendly materials.

One possible way is to make acquisitions that will benefit from the growth of the green economy. Bunzl certainly has the financial strength to make transformative purchases that increase profitability. Net-debt-to-EBITDA stood at 1.6 times in June, the latest data showed. This is less than the target of 2 to 2.5 times.

I bought Bunzl stock because of its highly successful acquisition-based growth strategy. And at the new prices I will be looking to buy more of its shares if I have cash to spare.

Tesco

On paper Tesco Shares (LSE:TSCO) also look cheap today. Britain’s largest supermarket trades at a forward P/E ratio of 11.6 times. He also brought a FTSE 100– beats 4.4% dividend yield for this financial year.

But I believe these low prices reflect the enormous risk that the cost-of-living crisis poses to profits. Thinktank the Resolution Foundation says average disposable income will fall by £2,100 per household by 2023. This will hit demand for food and essentials, as well as discretionary items.

Aldi’s strong festive trade reflects the impact the cost-of-living crisis is already having on shopper behaviour. The German budget chain said it had 1.3 million more customers inundated in the run-up to Christmas as it gained customers from more expensive retailers.

Tesco is stuck in a difficult situation. It can lower prices to try and stop customers leaving in large numbers. Or you can continue to discount and watch your profit margins drop to almost nothing.

Margins in the UK and Ireland retail division fell below 4% in the six months to August. And that pressure will continue to grow as Aldi and Lidl expand their store networks. Rising online competition from traditional competitors like Sainsbury’s and from the internet specialist Ocado and Amazon also cause extra danger.

As Foolish colleague John Choong recently commented, changes to the Clubcard application could help supermarkets fight the competition. This will see grocery stores send cashback coupons to customers more often. But I still believe that the risk of buying Tesco shares is still too high today.