The FTSE 100 has some terrific companies to invest in. And even after a strong month for the index, there are some I’m seriously considering adding to my portfolio in April.

Most of all, what I look for in identifying stocks to buy is a business that has a clear advantage over its competitors. And three stand out to me at the moment.

Insurance

In general, I’m not a fan of the UK insurance industry. Car insurers generally struggle to do much better than break even with their underwriting – with one notable exception.

Admiral (LSE:ADM) has a strong track record of achieving better results than its peers. And I think that’s a result of the business having a durable competitive advantage, rather than an accident.

Most recently, the company navigated its way through a period of high inflation by increasing prices ahead of its rivals. This cost them market share in the short term, but it helped maintain margins.

The stock isn’t an obvious bargain, which constitutes a risk. But over the long term, I’m expecting the differentiated business model to provide good returns for shareholders. 

Distribution

Bunzl (LSE:BNZL) reported earnings in March and the stock market was fairly underwhelmed. But that looks to me like a buying opportunity in what I view as an exceptional FTSE 100 business.

The company’s a distributor of things like carrier bags, disposable cutlery, and hygiene products. And it has been growing well over the last decade, despite revenues taking a step back recently.

A lot of that growth comes through acquisitions, which brings a risk of overpaying for a business. But Bunzl has the ability to add value to the companies it brings into its network, reducing the danger of this.

I think Bunzl has a long runway ahead, both in terms of growth and the service it offers its customers, and unrivalled in terms of speed and reliability. That’s why the stock could be a great investment.

Chemicals

The other FTSE 100 stock I’m looking to buy this month is Croda International (LSE:CRDA). The chemicals company enjoyed a huge boom during the Covid-19 pandemic but has fallen back since.

That’s the result of high inventory levels built up in its end markets – especially vaccines – as demand normalises in a post-pandemic world. But these are likely to wear off over time.

The risk is that investors might have to wait a while before profits recover. Management isn’t giving any signs of how quickly excess inventories are running down, or when things will get back to normal. 

Croda has the balance sheet to make it through a downturn though, and the company even managed to increase its dividend to shareholders. I think there’s a buying opportunity for the long term here.

Finding stocks to buy

Admiral, Bunzl, and Croda look like great stocks to consider buying in April. But in each case I’m looking at the long term rather than predicting what the share prices will do in the next few months.

In the short term, shares might go up or down for a number of reasons. Over time though, the strong businesses that underpin these stocks should allow them to generate strong returns for investors.